Airbnb's Next Big Business Might Be Hotels

0:10Today, we're covering Airbnb's big bet on hotels, the former hotel CEO is building an AI native management company that isn't shy about cutting jobs, and why Brand USA's COVID-era funding windfall is running thin. Welcome back to the Skift Daily Briefing. It's Tuesday, September 22nd. I'm Bailey Schultz, Skift's global tourism reporter. Let's get into it. First up, hotels are shaping up to be Airbnb's biggest new business. CEO Brian Chesky says he stopped being, quote, ideological about listing hotels and started being practical. More than 3 ,900 hotels are live under Airbnb's new listing format as of early September.

0:52It's still a small slice of total bookings, but Chesky argues that hotels could become a business 10 times bigger than Airbnb's core rental segment. Airbnb has pitched hotels a lower commission and a different crowd. One operator told Skiff that Airbnb's take rate ran lower than what Expedia and Booking.com typically charge. And early adopters say that bookings skew towards guests they consider genuinely new. Other hotel operators are less sure and are on the lookout for signs of cannibalization. Next up, a former Remington hospitality CEO is building a hotel management company designed to run on AI.

1:28Sloan deems new startup AI Hospitality Group, or AIHG, has raised$7.5 million in seed funding. The pitch is an AI operating system that automates the coordination work middle managers currently do, with the potential to cut a five or six person sales team down to two or three. The fee structure breaks from industry norms with a lower base fee, minimal reimbursables, and an uncapped share of gross operating profit expansion above an agreed baseline. Dean didn't dispute that AIHG may end up charging a net fee that could exceed what an incumbent charges if the model works as advertised. Instead, his agentic AI and other automation would let his company generate higher margins than the typical third-party hotel operator.

2:11And finally, Brand USA's COVID-era budget windfall is growing thin. A one-time$250 million boost from Congress in 2022 had let the nation's DMO operate on a nearly full budget, even after its federal funding match was cut 80 % in 2025. But that extra cushion is growing thin. Brand USA plans to draw about$114 million from reserves next year, leaving it just above its board's minimum cash floor. Looking ahead, the organization's 2028 spending power remains murky. Some lawmakers are pushing for a bill that would restore funding to the full$100 million match, and the organization is confident that Congress will reauthorize funding past 2027.

2:54That's it for the Skift Daily Briefing. For more travel industry news, head to skift.com and sign up for our newsletter at skift.com slash daily.

3:11Thank you.